Rescuing Africa’s Development through transformation
Africa's recovery from the economic shocks of the COVID-19 pandemic and other crises has been slow. According to the African Development Bank, real GDP growth declined from 4.1 percent in 2022 to 3.1 percent in 2023, with projections indicating a stabilization at 4.0 percent by 2024–2025. This deceleration is largely due to persistently high food and energy prices, weaker global demand for exports, and the adverse effects of climate change, including extreme weather events that have disrupted agricultural output and power generation.
In addition to these immediate challenges, structural issues such as limited technological adoption, inadequate financing, ongoing conflicts, and climate vulnerabilities have further hindered Africa’s development. These obstacles have widened wealth and gender inequalities, deepened the rural-urban divide, and placed significant stress on ecosystems. The UN Economic Commission for Africa has expressed concern, highlighting that 55 percent of the global population living below the poverty line is in Africa. The African Sustainable Report for Africa for 2023 underscores that Africa’s progress toward achieving the Sustainable Development Goals (SDGs) remains uneven, calling for urgent action to help the continent meet its 2030 targets.
Towards Economic Transformation of Africa
To achieve the SDGs, Africa must pursue robust and inclusive growth, rooted in meaningful economic transformation. As described by Atta-Mensah (2015) and Atta-Mensah (2017), economic transformation is the process by which an economy transitions from a predominantly rural and agrarian base to a middle-income, urbanized economy driven by industry and services. This transformation is not simply about growth; it requires a fundamental restructuring of economic systems to enhance productivity and diversify industries. Aiming for the SDGs, Africa needs strong, inclusive growth alongside structural economic transformation that builds resilience to external shocks. Economic transformation, as defined by Syrquin (1988), involves a shift from poverty and a rural-based economy to middle-income status, with increased contributions from industry and services to GDP and employment.[1] Key elements of this transformation include industrialization, increased agricultural productivity, urbanization, and a transition from primary to value-added products. This process enables deeper integration into global supply chains, continuous learning, technological advancement, and skill development, ultimately leading to higher productivity, greater income per capita, and job creation.
Such transformation involves critical shifts, including industrialization, increased agricultural productivity, and a move from raw commodity exports to value-added products. These developments enable countries to integrate into global supply chains, drive technological advancements, and foster a culture of continuous learning. Ultimately, effective economic transformation boosts productivity, raises income per capita, and generates employment opportunities.
However, it is essential to recognize that economic transformation may not initially produce equitable growth. In its early stages, transformation often brings increased income inequality, as suggested by Kuznets (1955). [2] The Kuznets’ curve suggests that initial industrialization leads to greater income inequality, but as economies progress, inequality decreases as productivity and wages rise. Beyond economics, transformation also reshapes society, influencing education, urbanization, gender roles, family structures, cultural norms, and political engagement. Industrialization typically brings a stronger focus on education and skill development, leading to higher literacy rates and diverse career paths. Urban migration changes lifestyles, fostering more secular attitudes and cultural diversity. Women gain independence through workforce participation, shifting family dynamics and gender roles. Families tend to become smaller and more nuclear, while societal values increasingly favor innovation and individualism. Politically, a more informed population advocates for transparency, democracy, and human rights, strengthening civil society.
While economic transformation is crucial for achieving the SDGs, it may not result in shared growth immediately. Initial phases can lead to uneven development and rising income inequality, as outlined by Kuznets (1955). Yet, as transformation progresses, modernized economic, social, and institutional structures reshape human life, values, norms, and customs, shifting from traditional to modern frameworks. These changes affect educational needs, family formation, gender relations, and personal status. Transformation also impacts transportation, communication, legal systems, and institutional innovation, requiring new laws to protect property rights and sustain innovation.
What can Africa learn from the China?
China’s remarkable transformation offers valuable insights for Africa’s development journey. Here are some critical lessons Africa can draw from China:
Agricultural Reforms as a Foundation for Growth: China’s transformation began with agricultural reforms, especially changes in land tenure, which provided rural households with greater control and incentives to boost food production. In Africa, where agriculture remains a primary employer, similar reforms could enhance productivity and strengthen food security. Ensuring secure land access, improving irrigation systems, and supplying modern agricultural inputs will be essential steps toward establishing a strong foundation for sustainable growth.
Rural Development as a Catalyst for Urbanization: China’s early success in agriculture generated surpluses that fuelled its broader economic transformation. Africa can similarly harness both agricultural reforms and rural development to create the capital necessary for investment in other sectors. Agricultural reforms, such as improving land tenure security, expanding irrigation, and providing modern inputs, can directly boost agricultural productivity and food security. At the same time, rural development initiatives—such as building roads and digital infrastructure, enhancing access to healthcare and clean water, and expanding educational opportunities beyond basic literacy—can empower rural communities, facilitate market access, and prepare a skilled workforce. Together, these efforts can create a strong foundation for a smoother transition to diversified, urban-led growth.
Investing in Infrastructure and Technology: China’s substantial investments in infrastructure—roads, railways, ports, and energy—have been pivotal to its economic success. Africa requires similar investments in affordable infrastructure to link its fragmented markets, lower transportation costs, and enhance energy access. In addition to physical infrastructure, Africa should prioritize technological infrastructure, such as digital networks and technologies, to drive efficiency and productivity across all sectors.
Special Economic Zones (SEZs): China’s establishment of Special Economic Zones (SEZs) attracted foreign investment, fostered industry clusters, and promoted export-led growth. African countries can similarly develop SEZs to drive industrialization, attract foreign direct investment (FDI), and integrate into global supply chains. These zones can also function as testing grounds for new policies, innovations, and industries, which can later be expanded nationwide.
Human Capital Development: China invested heavily in education and skills training, especially in science, technology, engineering, and mathematics (STEM). Africa should similarly prioritize education reform by ensuring access to quality education and aligning skills development with labour market needs. Increased investment in higher education, vocational training, and research institutions will be essential for preparing Africa’s workforce for the demands of a 21st-century economy.
Environmental Costs: China’s rapid development brought significant environmental costs, including pollution and resource degradation. Africa can avoid these pitfalls by prioritizing sustainable development from the outset. The continent can leverage its abundant natural resources to promote green growth, emphasizing renewable energy, conservation, and sustainable agriculture. By focusing on environmentally responsible practices, Africa can support long-term economic development while safeguarding its ecosystems for future generations
Rescuing the SDGs through Transformation
To address economic challenges, African countries can adopt a comprehensive framework for economic transformation that emphasizes agricultural modernization, investment in science, technology, and innovation, infrastructure development, strengthened manufacturing, and macroeconomic stability. Modernizing agriculture can lay the foundation for export-driven growth, while investments in science and technology can enhance productivity and accelerate development. Infrastructure is essential for sustained economic growth and human development, and a robust manufacturing sector can add value to agricultural products and create significant employment opportunities.
Regional integration is also crucial for Africa’s economic transformation. By uniting fragmented economies into a single continental market, Africa can compete more effectively on a global scale, boost income levels, and reduce poverty. Deepening continental integration requires establishing a common African market, harmonizing financial and monetary systems, and promoting sound political and economic governance.
Implementing this transformation framework will require substantial investments in infrastructure, research and development, and institutional reforms. The African Development Bank estimates that Africa needs to bridge an annual financing gap of approximately $402 billion by 2030 to accelerate its transformation and catch up with other high-performing developing regions. To meet these funding needs, African governments could explore several strategies, including mobilizing revenues from natural resource extraction, enhancing tax collection alongside more efficient public spending, establishing regional infrastructure banks, creating sovereign wealth funds, issuing SDG-linked bonds, and undertaking long-term institutional and financial reforms to expand access to capital markets.
Achieving the SDGs in Africa calls for a comprehensive transformation framework that not only addresses current economic challenges but also builds resilience for the future. Key recommendations for Africa’s path forward include:
Agricultural Modernization: Agriculture remains the backbone of many African economies. Modernizing the sector through technology adoption, sustainable farming practices, and improved market access can significantly boost productivity and strengthen food security. Investments in agro-processing can further add value, creating diversified products such as packaged foods, processed fruits, vegetable oils, dairy products, and biofuels. These products not only support economic diversification but also open new revenue streams and job opportunities across the continent.
Investments in Science, Technology, and Innovation: Africa’s long-term growth hinges on its ability to harness science, technology, and innovation (STI). Strategic investments in research and development, along with strengthened partnerships between universities, the private sector, and governments, are essential to driving innovation and accelerating technological adoption across industries.
Strengthening Manufacturing: Manufacturing is essential for economic transformation. African countries should prioritize value-added manufacturing, especially in sectors where they hold a comparative advantage, such as agriculture, textiles, and natural resources. This approach will create jobs, reduce reliance on imports, and enhance export competitiveness.
Infrastructure Development: Reliable infrastructure is crucial for economic growth. Investing in energy, transportation, and communication infrastructure can reduce transaction costs, enhance market access, and drive industrialization. Leveraging public-private partnerships (PPPs) can further accelerate the development of large-scale infrastructure projects.
Macroeconomic Stability: To attract investment and drive economic growth, African countries must prioritize macroeconomic stability. Implementing sound fiscal and monetary policies, alongside transparent governance, will help create a business-friendly environment that encourages investment.
Regional Integration: The African Continental Free Trade Area (AfCFTA) offers a transformative opportunity for Africa to integrate its markets, increase intra-African trade, and enhance the continent’s competitiveness. Advancing regional integration will also support economic diversification and reduce dependence on primary commodity exports.
Closing the Financing Gap: African governments must address the estimated $402 billion annual financing gap to accelerate development. Innovative financing mechanisms—such as SDG-linked bonds, sovereign wealth funds, and regional infrastructure banks—can play a crucial role in mobilizing resources for long-term investments in key sectors.
Recommendations for a Sustainable Future
In September 2024, global leaders gathered at the UN Summit of the Future in New York, where they collaborated on strategies for achieving the SDGs. Building on these global efforts, African leaders might consider revitalizing their development goals by restructuring economies, diversifying beyond primary commodities, investing in sustainable infrastructure, promoting industrialization and value addition, enhancing human capital through education and skills development, strengthening institutions and governance, and fostering regional integration and cooperation.
By advancing these initiatives, Africa can embark on a transformative path that addresses entrenched poverty and paves the way for a more sustainable and prosperous future. Additionally, African countries may consider the following specific recommendations:
Ownership of Development: Africans must take ownership of the continent’s development. Over-reliance on external aid is unsustainable; instead, African countries should prioritize mobilizing domestic resources. Governments can support this shift by improving tax collection, curbing illicit financial flows, and investing strategically in sectors that drive long-term growth.
Sustainable Environmental Practices: To avoid the environmental challenges encountered by other rapidly developing regions, Africa should prioritize sustainable development. By harnessing its rich biodiversity and renewable energy potential, the continent has an opportunity to lead in climate-friendly industries, achieving economic growth while safeguarding the environment.
Leveraging Digitalization: Africa’s young, dynamic, and increasingly tech-savvy population presents a tremendous opportunity for digital transformation. Governments should invest in digital infrastructure, foster entrepreneurship, and leverage fintech, e-commerce, and digital agriculture to drive inclusive growth across the continent.
Focus on Inclusive Growth: Finally, Africa’s transformation must be inclusive. Governments should prioritize policies that reduce inequality, expand access to education and healthcare, and ensure that marginalized groups—including women and rural communities—share in the benefits of economic growth.
It is vital for Africans to recognize that the continent’s development lies squarely in their hands. Relying solely on external aid or grants, often misconstrued as "handouts," will not effectively alleviate poverty or drive meaningful change. Instead, Africans must take ownership of their development journey, embracing the responsibility to finance and shape the future they envision. This journey may require patience, perseverance, and sacrifice, yet the long-term rewards of self-directed development will far surpass the temporary ease of external assistance. By adopting this mindset, Africans can unleash their collective potential, building a brighter, more prosperous future for themselves and future generations.
With these lessons and recommendations as a guide, Africa can pursue a path of sustainable, inclusive growth. Achieving the SDGs by 2030 will demand bold action, innovation, and unwavering commitment to long-term progress. Africa’s future rests firmly in its own hands—and with the right policies and investments, it holds the power to transform its economic and social landscape for generations to come.
[1] Syrquin, M. (1988). Patterns of structural change. In H. Chenery and T. Srinivasan (Eds.), Handbook of development economics. New York: Elsevier.
[2] See Kuznets (1955). “Economic Growth and Income Inequality.” American Economic Review 45:1-28.
The basic underlying factor driving Africa's undevelopment is the lack of enforcement of basic RULES and REGULATIONS. The effective adherence to the Rule of Law is what drives Development. This leads to an ORDERLY SOCIETY, which leads to Development. When Towns and Cities and Communities don't function, because institutions are not viable and functional, sustainable development will not happen. In a society where basic city ordinance are not enforceable, the Police and the Judiciary are out of control, Land tenure is in disarray and everyone basically tries to circumvent the law, and mostly gets away with it, we cannot even begin to talk about development policy. You see, one has to have a society before we can discuss how to develop. Most countries in Africa are not yet a society. We need to build societies first, then we can begin to develop.
SAM KWOFIE.